In 1928, Yoshisuke Aikawa founded the holding company Nippon Sangyo (Japan Industries or Nippon Industries). "The name 'Nissan' originated during the 1930s as an abbreviation" used on the Tokyo stock market for Nippon Sangyo. This company was the famous Nissan "Zaibatsu" which included Tobata Casting and Hitachi. At this time Nissan controlled foundries and auto parts businesses, but Aikawa did not enter automobile manufacturing until 1933.
Nissan would eventually grow to include 74 firms, and to be the fourth-largest combine in Japan during World War II.
In 1930, Aikawa purchased controlling shares in DAT Motors, and then in 1933 it merged Tobata Casting's automobile parts department with DAT Motors. As Tobata Casting was a Nissan company, this was the beginning of Nissan's automobile manufacturing.
Nissan Motors founded in 1934
In 1934, Aikawa "separated the expanded automobile parts division of Tobata Casting and incorporated it as a new subsidiary, which he named Nissan Motor (Nissan)". Nissan Motor Co., Ltd. The shareholders of the new company however were not enthusiastic about the prospects of the automobile in Japan, so Aikawa bought out all the Tobata Casting shareholders (using capital from Nippon Industries) in June, 1934. At this time Nissan Motors effectively became owned by Nippon Sangyo and Hitachi.
Nissan built trucks, airplanes, and engines for the Japanese military. The company's main plant was moved to China after land there was captured by Japan. The plant made machinery for the Japanese war effort until it was captured by American and Russian forces. From 1947 to 1948 the company was called Nissan Heavy Industries Corp.
Nissan's early American connection
DAT had inherited Kubota's chief designer, American William R. Gorham. This, along with Aikawa's inspiring 1908 visit to Detroit, was to greatly affect Nissan's future.
Although it had always been Aikawa's intention to use cutting-edge auto making technology from America, it was Gorham that carried out the plan. All the machinery, vehicle designs and engine designs originally came out of the United States. Much of the tooling came from the Graham factory and Nissan had a Graham license under which trucks were made. The machinery was imported into Japan by Mitsubishi on behalf of Nissan, which went into the first Yokohama factory to produce cars.
Austin Motor Company
In early 1950s, Nissan partnered with an established European company to gain access to up-to-date automobile and engine designs. Nissan chose Austin of the United Kingdom, which later became the British Motor Corporation by its merger with Morris et al. Nissan began building Austin 7s in 1930, though the legitimacy of their license at that time is debated. After the success of Nissan, Hino and Isuzu followed to partner with Renault and Hillman respectively.
In 1952 Nissan Motor Company of Japan entered into a legal agreement with Austin , for Nissan to assemble 2,000 Austins from imported partially assembled sets and sell them in Japan under the Austin trademark. The agreement called for Nissan to make all Austin parts locally within three years, a goal Nissan met. Nissan produced and marketed Austins for seven years. The agreement also gave Nissan rights to use Austin patents, which Nissan used in developing its own engines for its Datsun line of cars. In 1953 British-built Austins were assembled and sold, but by 1955, the Austin A50 – completely built by Nissan and featuring a slightly larger body with new 1489 cc engine—was on the market in Japan. Nissan produced 20,855 Austins from 1953–1959.
Nissan leveraged the Austin patents to further develop their own modern engine designs past what the Austin's A- and B-family designs offered. The apex of the Austin-derived engines was the new design A series engine in 1967. Also in 1967 Nissan introduced its new highly advanced four cylinder overhead cam (OHC) Nissan L engine, which while similar to Mercedes-Benz OHC designs was a totally new engine designed by Nissan. This engine powered the new Datsun 510, which gained Nissan respect in the worldwide sedan market. Then, in 1969 Nissan introduced the Datsun 240Z sports car which used a six-cylinder variation of the L series engine. The 240Z was an immediate sensation and lifted Nissan to world class status in the automobile market.
Merger with Prince Motor Company
In 1966, Nissan merged with the Prince Motor Company, bringing more upmarket cars, including the Nissan Skyline and Nissan Gloria, into its selection. The Prince name was eventually abandoned, and successive Skylines and Glorias bore the Nissan name. "Prince," was used at the Japanese Nissan dealership "Nissan Prince Shop" until 1999, when "Nissan Red Stage" replaced it. Nissan Red Stage itself has been replaced as of 2007. The vehicles that were the result of Prince manufacturing and development, such as the Gloria and the Skyline live on in the internationally established dealership chain, called Infiniti.
Foreign expansion
In the 1950s, Nissan decided to expand into worldwide markets. Nissan management realized their Datsun small car line would fill an unmet need in markets such as Australia and the world's largest car market, the United States. They first showed cars at the 1959 Los Angeles Auto Show and sold a few that year in the United States. The company formed a U.S. subsidiary, Nissan Motor Corporation U.S.A., in 1959, headed by Yutaka Katayama. Nissan continued to improve their sedans with the latest technological advancements and chic Italianate styling in sporty cars such as the Datsun Fairlady roadsters, the race-winning 411 series, the Datsun 510 and the world-class Datsun 240Z, and by 1970, they had become one of the world's largest exporters of automobiles.
Nissan GT-R
In the wake of the 1973 oil crisis, consumers worldwide (especially in the lucrative U.S. market) began turning in rapidly increasing numbers to high-quality small economy cars. To meet the growing demand, the company built new factories in Mexico, Australia, Taiwan and South Africa.
The "Chicken Tax" of 1964 placed a 25% tax on imported commercial vans. In response, Nissan, Toyota Motor Corp. and Honda Motor Co. began building plants in the U.S. in the early 80s.
Nissan's initial assembly plant, in Smyrna, Tennessee, at first built only trucks such as the 720 and Hardbody, but has since expanded to produce several car and SUV lines, including the Altima, Maxima, Xterra and Pathfinder. An engine plant in Decherd, Tennessee followed, and most recently a second assembly plant in Canton, Mississippi.
In 1998 Nissan announced that it was selling one of its headquarter buildings to the Mori Group for $107.8 million.
In order to overcome export tariffs and delivery costs to its European customers, Nissan contemplated establishing a plant in Europe. After an extensive review, Sunderland in the north east of the United Kingdom was chosen for the local availability of a highly skilled workforce and its position near major ports. The plant was completed in 1986 as the subsidiary Nissan Motor Manufacturing (UK) Ltd. By 2007, it was producing 400,000 vehicles per year, landing it the highly coveted title of the most productive plant in Europe.
Financial difficulties (approaching billions) in Australia in the late 1980s caused Nissan to cease production there. Due to the "Button Plan" the Australian operation was unique as the Nissan products were also rebranded both by General Motors Holden: Pulsar as the Holden Astra), and Ford: Bluebird as the Ford Corsair).
In 2001 established a manufacturing plant in Brazil, in 2005, Nissan setup operations in India, through its subsidiary Nissan Motors India Pvt. Ltd. With its global alliance partner, Renault, Nissan is investing $920 million to set up a manufacturing facility in Chennai to cater to the Indian market as well as a base for exports of small cars to Europe.
Nissan sold nearly 520,000 new vehicles in China in 2009 in joint venture with Dongfeng Motor, and aims for 1 million in 3 or 4 years. To meet that target, Dongfeng-Nissan is expanding its production base in Guangzhou, which would become Nissan's largest factory around the globe in terms of production capacity upon completion.
Relationship with Ford Motor Company
From 1993 to 2002, Nissan partnered with Ford to market the Mercury Villager and the Nissan Quest. The two minivans were manufactured with all the same parts and were virtually identical aside from several cosmetic differences. In 2002, Ford discontinued the Villager to make room for its Freestar and Monterey. Nissan brought out a new version of the Quest in 2004, which was designed in-house and no longer bore any relation to Ford's models.
In 1992, Nissan relaunched its Terrano four-wheel drive, which was cosmetically and mechanically identical to the Ford Maverick. Both cars were built in Spain. Although the Maverick was discontinued in 1998 due to disappointing sales, the Nissan Terrano was a strong seller and remained in production until 2005, when it was replaced by the Nissan Pathfinder.
Trucks
2006 Nissan Titan King Cab, The Nissan Titan was introduced in 2004, as a full-size pickup truck produced for the North American market, the truck shares the stretched Nissan F-Alpha platform with the Nissan Armada and Infiniti QX56 SUVs.
The Titan features a 32 valve 5.6 L VK56DE V8 engine which generates 317 hp, and is capable of towing approximately 9500 pounds. The Nissan Titan comes in four basic trim levels: XE, SE, Pro-4X, and LE; that for the 2011 it will be S, SV, PRO-4X and SL.The trim levels are combinations of the features offered on the truck. It was listed by Edmunds.com as the best full-size truck. The Titan was nominated for the North American Truck of the Year award for 2004.
Alliance with Renault
In 1999, with Nissan facing severe financial difficulties, Nissan entered an alliance with Renault S.A. of France.
Signed on March 27, 1999, the Renault-Nissan Alliance is the first of its kind involving a Japanese and French car manufacturer, each with its own distinct corporate culture and brand identity. The same year, Renault appointed its own Chief Operating Officer, Carlos Ghosn, as Chief Operating Officer of Nissan and took a 22.5% stake in Nissan Diesel. Later that year, Nissan fired its top Japanese executives.
The Renault-Nissan Alliance has evolved over years to Renault holding 44.3% of Nissan shares, while Nissan holds 15% of Renault shares which does not give Nissan a voting or board representation due to legal restriction in France.
Under CEO Ghosn's "Nissan Revival Plan" (NRP), the company has rebounded in what many leading economists consider to be one of the most spectacular corporate turnarounds in history, catapulting Nissan to record profits and a dramatic revitalization of both its Nissan and Infiniti model line-ups. In 2001, the company initiated Nissan 180, capitalizing on the success of the NRP. The targets set with 180 were an additional sale of 1 million cars, achieving operating margins of 8%, and to have zero automotive debts. Ghosn has been recognized in Japan for the company's turnaround in the midst of an ailing Japanese economy. Ghosn and the Nissan turnaround were featured in Japanese manga and popular culture. His achievements in revitalizing Nissan were noted by Japanese Government, which awarded him the Japan Medal with Blue Ribbon in 2004.
Expansion of alliance to include both Daimler and Renault
Nissan Motors New Headquarters under construction in April 2008, on April 7, 2010, Daimler AG exchanged a 3.9% share of its holdings for 3.9% from both Nissan and Renault. This triple alliance allows for the increased sharing of technology and development costs, encouraging global cooperation and mutual development. The alliance with Daimler is believed to have a focus on battery/electric technologies.